This project is concerned with the minimization of the number of information carrying units used to represent a medical image in order to improve the efficiency of transmission and storage of such images. Various image data compression techniques and their application to medical images have been evaluated to determine the amount of compression attained and the quality of the reconstructed image. Recently, there has been an increase in the number of medical imaging techniques that result in a digital image representation. These techniques include computed tomography, ultrasonography, magnetic resonance imaging, and digital radiography. As a result of this increased number of digital images, there is a need for Picture Archive and Communication Systems (PACS) that are capable of storing, transmitting, and displaying such images. Because the quantities of image data are large, it is important to consider techniques for data compression to reduce archival and transmission requirements.